Johnson Sells $100,000 of Product to Robbins, and Also Purchases

question 35

Multiple Choice

Johnson sells $100,000 of product to Robbins, and also purchases $10,000 of advertising services from Robbins. The advertising services have a fair value of $8,000. Johnson should record revenue on its sale of product to Robbins of:

• A) $100,000
• B) $98,000
• C) $92,000
• D) $90,000

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Definitions:

Hematite

A mineral form of iron(III) oxide (Fe2O3), typically a reddish-black color, which is an important ore of iron.

Feldspar

A group of rock-forming silicate minerals that make up about 41% of the Earth's continental crust by weight.

Terrestrial Planets

Terrestrial planets are those that are composed primarily of silicate rocks or metals, with solid surfaces, including Mercury, Venus, Earth, and Mars in our solar system.

Saturn

The sixth planet from the Sun, known for its extensive ring system, which is composed mainly of ice particles, rock debris, and dust.